If you've ever read through a real estate contract during the conveyancing process in Australia, you've probably seen the term "time of the essence" mentioned many times. Learn more about what it means, why it is used - and whether there are ever any exceptions to it - by reading on below.
What Does It Mean?
Most real estate contracts in Australia include a term like this: "time shall be considered to be of the essence." Basically, this means that the time limits and deadlines that are outlined and specified in a contract must be adhered to very strictly. Failure to meet a deadline can result in the cancellation of a contract. There is no "wiggle room," in other words, when it comes to these contracts.
Why Is It Used?
As any conveyancing Gold Coast solicitor can tell you, time of the essence is used in real estate contracts in order to streamline the process and to make sure that is proceeds in an orderly manner. It is designed to protect buyers and sellers alike, since if one party fails to meet a deadline the whole contract can be rendered void. Although it may seem a bit harsh, it is really a tried and true bit of verbiage that ensures that the entire conveyancing process is conducted smoothly and seamlessly - and within a reasonable period of time.
Can It Be Extended?
Certain contract deadlines can be extended by the mutual agreement of the buyer and the seller during the conveyancing process. Should this happen, it is important to make sure that an adequate amount of time is assigned for the issue to be resolved. In order to get an extension, a request must be made in writing from one party to another. A termination of the contract can result if issues are not handled in the right manner, for example, simply asking for something over the phone or allowing for contract dates to expire.
Know Your Conveyancing Terms -
While there's no need to educate yourself about every last intricate detail of the conveyancing process, having a decent grasp of the basic terms and concepts is never a bad idea. By doing that, you can increase the odds of having a smooth, seamless experience. This will additionally make it easier for you to discuss the various issues or matters with your solicitor as you will not have to ask them to explain every single point and term to you. As confusing as it may seem, a concept like time of the essence is actually a simple, cut and dry idea.
Since you're going to hire a top-notch conveyancing Brisbane firm such as Ownit Conveyancing to assist you with the conveyancing process, you'll be able to ask them what "time of the essence" means. The right conveyancing Gold Coast solicitor will be more than happy to explain such things to you.